Real Money

Judge Grants L&L's Motion To Dismiss In Class Action Suit

SEATTLE, Dec. 4, 2012 /PRNewswire/ -- L&L Energy, Inc. (NASDAQ: "LLEN") ("L&L" or "Company"), a Seattle-based company with a track record of profitable coal operations in China, announced on Monday that the United States District Court, Western District of Washington ("the Court") at Seattle granted the Company's motion to dismiss the class action lawsuit (Mills vs. L&L Energy, Inc., Case No. C11-1423RSL) filed against L&L and several of its officers and directors.

The lawsuit was based on internet reports published by short sellers. L&L denied the accusations contained in these reports. In the lawsuit, L&L and the other defendants filed a motion with the court to dismiss the plaintiffs' complaint, which was granted on the grounds that the plaintiffs failed to adequately allege a violation of federal securities law. While the plaintiffs may seek the court's permission to file an amended complaint, the following comments from the judge were favorable to L&L:

"The record suggests that the plaintiff does not have the necessary evidence of intentional falsehood and loss causation: he has already had two opportunities to amend the complaint and some of the deficiencies identified in this order have been apparent from the outset. The court is loath to grant leave to amend where the particulars of the amendment are unknown and the existing record suggests futility."

L&L's Chairman and CEO, Dickson Lee commented, "We are very pleased with the court's favorable ruling supporting L&L's motion to dismiss. I congratulate management's discipline to fight the false accusations while remaining focused on growing the company and shareholder value. I believe that L&L is better positioned and is to becoming a leader in the coal sector of a growing Chinese economy."

The statements containing words that are not historical fact, including statements related to Company's future performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and that involve a number uncertainties. Actual results of the future events described in this document could differ materially. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

If you liked this article you might like

What you may have missed, including takes on Micron, SolarCity, Zagg, Fastenal, Family Dollar, Sysco and Nu Skin from the past week or so. When Micron reports earnings Thursday, expect a lot of focus on pricing in dynamic random-access memory (DRAM). In a piece on Reality Check headlined, Is Micron headed for a Tumble?, the issue in focus was whether DRAM capacity is quietly increasing -- and, if so, whether prices could start to slide. The battle lines, involving some very smart people, have been drawn: Bulls think prices could show surprising resilience, and bears don't. But, as I wrote, the answer isn't likely to come with this quarter's earnings. This is something that, if you believe the bears, is currently evolving. The bigger question is whether there is a new world order in memory.....

Before your eyes roll -- if you do nothing else, scan down to the bold-faced part of this story, and start reading from that point on. If you have a few minutes more: Last week's SEC suit against L&L Energy CEO Dickson Lee on fraud charges didn't make the headlines. Nor did the news that he landed in a Federal prison in Seattle, waiting for an arraignment Tuesday, as the Feds seek criminal charges against him on the same securities charges. My only question, even though these are just charges: What took 'em so long?